At this Monday's Council meeting (and prior work session), new ordinances (amendments) regarding possible changes to electric and sewer rates/fees are scheduled to be considered by the Council/Mayor. In his 2010 budget presented to the Financial Advisory Committee last Summer, the Mayor predicted an electric rate hike would be needed by this March (according to the Electric Dept. Head).
Sewer rates were increased last Oct. (2009)-- and are already scheduled to rise again this Nov. (2010). [But the system is still operating in the red, according to prior statements by Finance Reporter Fogarty]
An electric "rate study"--to be completed by the city's electric supplier AMEA--was commissioned by the Mayor/Council last Fall. (Mayor Kant is currently serving as Secretary/Treasurer of the AMEA).
Recent media reports have indicated that all city revenue sources are down for this year--excepting the new sales tax.
Sources say the matter will be discussed at the 5PM work session (Delchamps room) preceding the Council meeting. (The public is invited to attend)
Councilman Kingrea: "My goal regarding the electric rate is to establish a rate that is fair to the consumer, as well as the city. Any fuel adjustment charge should be just that, and that alone, not a revenue enhancement charge, which probably means the rate may have to increase, but the FAC( fuel adjust charge) will go down."
Councilman Mixon: "We are going to discus setting a percentage of profit on our cost of electricity that will be constant. The only variation will be from AMEA as their cost varies."
[Publisher's Note: What the Councilmen are proposing to rectify is a long-term source of confusion for many residents, the so-called "fuel adj. charge" that appears on our electric bills: In reality a complex 2 part calculation that involves much more than just fluctuating fuel costs needed to produce electricity; but also includes profits, inflation, et al. [see City Ordinance Chap. 21, Sec. 21]. It was also suggested by the Mayor last Summer--at a Financial Committee meeting--to finally address/clarify this confusing calculation.]
***It was announce late in the day, there will also be a Financial Advisory Committee public meeting as well prior to the work session (4:45, Delchamps room).
[Publisher's note: The proposed new ordinances are not available for public inspection at this time, because they are subject to change/amendment --according to City Clerk Hanks.]
At this Monday's Council meeting (and prior work session), new ordinances (amendments) regarding possible changes to electric and sewer rates/fees are scheduled to be considered by the Council/Mayor. In his 2010 budget presented to the Financial Advisory Committee last Summer, the Mayor predicted an electric rate hike would be needed by this March (according to the Electric Dept. Head).
Sewer rates were increased last Oct. (2009)-- and are already scheduled to rise again this Nov. (2010). [But the system is still operating in the red, according to prior statements by Finance Reporter Fogarty]
An electric "rate study"--to be completed by the city's electric supplier AMEA--was commissioned by the Mayor/Council last Fall. (Mayor Kant is currently serving as Secretary/Treasurer of the AMEA).
Recent media reports have indicated that all city revenue sources are down for this year--excepting the new sales tax.
Sources say the matter will be discussed at the 5PM work session (Delchamps room) preceding the Council meeting. (The public is invited to attend)
Councilman Kingrea: "My goal regarding the electric rate is to establish a rate that is fair to the consumer, as well as the city. Any fuel adjustment charge should be just that, and that alone, not a revenue enhancement charge, which probably means the rate may have to increase, but the FAC( fuel adjust charge) will go down."
Councilman Mixon: "We are going to discus setting a percentage of profit on our cost of electricity that will be constant. The only variation will be from AMEA as their cost varies."
[Publisher's Note: What the Councilmen are proposing to rectify is a long-term source of confusion for many residents, the so-called "fuel adj. charge" that appears on our electric bills: In reality a complex 2 part calculation that involves much more than just fluctuating fuel costs needed to produce electricity; but also includes profits, inflation, et al. [see City Ordinance Chap. 21, Sec. 21]. It was also suggested by the Mayor last Summer--at a Financial Committee meeting--to finally address/clarify this confusing calculation.]
***It was announce late in the day, there will also be a Financial Advisory Committee public meeting as well prior to the work session (4:45, Delchamps room).
[Publisher's note: The proposed new ordinances are not available for public inspection at this time, because they are subject to change/amendment --according to City Clerk Hanks.]